Reasons for the Occurrence of Financial Scams in History
There are several reasons for the occurrence of financial scams and they can vary depending on the circumstances. But there are a few common reasons behind the biggest financial scams in history:
- The most common motivation for individuals or companies to scam others is greed. Individuals or companies want to generate sly gains through huge returns and profits.
- In many cases, weak regulatory frameworks contribute to the occurrence of financial scams. Fraudulent activities can go unnoticed for longer periods if regulatory bodies fail to enforce rules.
- Weak internal controls within companies can also create opportunities for scams to take place. When there is insufficient oversight, employees of a company may engage in unethical practices.
- Complex financial instruments also create opportunities for fraud and scams. Investors and regulators struggle to understand complex financial instruments, thereby providing cover for financial scams.
- Globalization and its effects can be seen in financial markets also. This also leads to complexity in financial instruments leading to the weakening of regulatory frameworks.
List of Financial Scams in History
List of Financial Scams in History: A financial scam is a fraudulent scheme or practice that tricks individuals, investors, and institutions into losing their money. These are usually carried out by a single person or a company. They can take various forms and exploit the vulnerabilities of the financial system of the country.
There are several financial scams in history. some of them are bank frauds, and others are stock market frauds. In this article, we will discuss the financial scams in history. we will discuss international as well as Indian Scams.
Table of Content
- What are Financial Scams?
- Reasons for the Occurrence of Financial Scams in History
- List of International Financial Scams in History
- List of Indian Financial Scams in History
- How to avoid Financial Scams?
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